Mayor Madden: Proposed Recommendations, Financial Assistance for City of Troy Approved by State Financial Restructuring Board

Mayor Madden: Proposed Recommendations, Financial Assistance for City of Troy Approved by State Financial Restructuring Board

TROY, NY – Mayor Patrick Madden today announced that the New York State Financial Restructuring Board for Local Governments has approved a series of recommendations and financial assistance for the City of Troy. The recommendations aim to assist the City address operational expenses, achieve savings through additional shared service agreements between the municipality and the County, lower healthcare costs in current and future budgets, and potentially reduce the burden of the City’s debt service payments.

“The recommendations issued by the Financial Restructuring Board not only affirm the ongoing efforts of my administration to strengthen Troy’s financial foundation, it provides our City valuable assistance to address short- and long-term financial challenges facing Troy,” said Mayor Madden. “In the face of significant increases in healthcare, labor and operational expenses, cities like Troy must continue to explore new ways to bend the curve of recurring costs, reduce the burden on our taxpayers and improve efficiencies to better deliver essential services to our residents. I want to thank Governor Cuomo, the members of the Financial Restructuring board and the staff, and our state representatives for their guidance and support throughout this important process. The fiscal hurdles facing our community remain a primary focus of my administration, and we will continue to work closely with the Financial Restructuring Board to analyze and implement their recommendations in support of other cost-saving initiatives currently being pursued by the City.”

Recommendations issued by the FRB include: $1.25 million to assist the City achieve healthcare savings and meet operational expenses; $995,000 to assist the City implement increased efficiencies through additional shared service agreements with Rensselaer County (including engineering, financial management systems, payroll, and civil service); $100,000 to fund an assessment of the City’s municipal vehicle fleet; and $440,000 to assist the City implement energy-efficient technology upgrades.

In addition, upon implementation of previous recommendations issued by the board and continued prudent fact-based budgeting practices instituted by the Madden administration, the FRB proposes providing additional annual financial assistance to the City to address the annual Municipal Assistance Corporation (MAC) debt service. To avoid bankruptcy due to a financial crisis resulting from significant overspending by City management in the 1980s, New York State created a Municipal Assistance Corporation to help the City of Troy restructure its debt. Troy’s current MAC debt payment represents approximately nine percent of the City’s annual General Fund spending.

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The Financial Restructuring Board for Local Governments (FRB) is a ten-member panel available year round to offer assistance to eligible municipalities. Upon approval and completion of review by the FRB, the board issued recommendations for the City of Troy on how to improve its fiscal stability and management, and delivery of public services.